| IPO Company Profile | |||
| Cumulus Media, Inc. | |||
| Proposed Ticker: | CMLS | 330 East Kilbourn Ave. | |
| Exchange: | NASDAQ-National Market | Milwaukee, WI 53202 | |
| Industry: | Service (SIC Code 4832) | (414) 283-4500 | |
| # of Employees: | 660 | ||
| Filing Information | |||||
| Shares Offered: | Class A Common Shares | Filing Date: | 3/30/98 | |
| U.S. Shares Filed: | 7,420,000 | Filing Range: | $15.00 - $17.00 | |
| Non-U.S. Shares Filed: | - | Offering Amount: | $118,720,000 | |
| Primary Shares: | 6,250,000 | Expenses: | - | |
| Secondary Shares: | 1,170,000 | Shares Out After: |
| Primary Underwriting Group | ||
| Manager | Tier | Phone |
| Lehman Brothers Incorporated | Lead Manager | (212) 526-8100 |
| Bear, Stearns & Co. Inc. | Co-manager | (212) 272-4850 |
| BT Alex Brown | Co-manager | (410) 727-1700 |
| Legal Counsel, Auditor and Registrar | ||
| Issuer's Law Firm: | Paul, Hastings, Janofsky & Walker | |
| Bank's Law Firm: | Simpson, Thacher & Bartlett | |
| Auditor: | Price Waterhouse | |
| Selected Financial Data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/97 | 12/31/97 | ||||
| Revenue: | $106.18 | Assets: | $458.96 | ||
| Net Income: | -$11.51 | Curr Assets: | |||
| EPS: | Liabilities: | $309.28 | |||
| Prior EPS: | Curr Liab: | ||||
| Cash Flow/Oper: | Equity: | $149.68 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| (Dollar amounts in U.S. millions except for per share data) | |||||
| Business Description |
| The company is a radio broadcasting company focused on the acquisition, operation and development of radio stations in mid-size and smaller radio markets in the U.S. The Company currently owns and operates, or provides sales and marketing services under LMA agreements (pending FCC approval of acquisition) to, 94 stations in 19 markets. Upon consummation of the Pending Acquisitions, the Company will be one of the five largest radio broadcasting companies based on number of stations, and among the fifteen largest based on net revenues, in the U.S. and will own and operate 167 radio stations (119 FM and 48 AM) clustered in 32 markets. The Company has assembled market-leading clusters with stations comprising the first or second ranked radio group, in terms of revenue share and/or audience share, in all of its 32 U.S. markets. On a pro forma basis after giving effect to the Transactions, the Company would have generated net revenues of approximately $106.2 million and Broadcast Cash Flow of approximately $27.7 million for the year ended December 31, 1997. |
| Competition |
| Radio broadcasting is a highly competitive business. The Company's radio stations, now owned or to be acquired upon completion of the Pending Acquisitions, compete for audiences and advertising revenues within their respective markets directly with other radio stations, as well as with other media such as newspapers, magazines, cable and broadcast television, outdoor advertising and direct mail. In addition, certain of the Company's stations compete, and in the future other of the Company's stations may compete, with groups of two or more stations operated by a single operator. Audience ratings and market shares are subject to change, and any adverse change in a particular market could have a material adverse effect on the revenue of stations located in that market. While the Company already competes with other stations with comparable programming formats in many of its markets, if another radio station in the market were to convert its programming format to a format similar to one of the Company's stations or launch aggressive promotional campaigns, or if a new station were to adopt a competitive format, or if an existing competitor were to strengthen its operations, the Company's stations could suffer a reduction in ratings and/or advertising revenue and could require increased promotional and other expenses, and consequently would have a lower Broadcast Cash Flow. |
| Business Plan |
| The Company's operating strategy has the following principal components: (I) Assemble and Manage Market Clusters with Regional Concentrations, (ii) Maximize Each Station's Potential through Positioning and Branding, (iii) Focus on Programming, (iv) Expand Dedicated Sales Force and Optimize Inventory Management, (v) Increase Radio Revenue Share, (vi) Implement Strict Cost Controls, (vii) Implement Internet-Based Management Information Systems and (viii) Recruit and Retain Skilled Managers. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to finance pending acquisitions and to repay indebtedness under the credit facility. |
Jackson Heights, NY 11372 212-332-0071[email protected]
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